Economy Ministry Drafting Legislative Framework To Curb Rent-Seeking Practices
The ministry said in a statement today that the measure aligns with the efforts of the Special Task Force to Facilitate Business (PEMUDAH) to strengthen actions against illicit business activities involving foreign nationals and to accelerate regulatory reforms aimed at creating a fair, transparent, and competitive business ecosystem.
The decision was reached during the PEMUDAH Meeting No. 3 of 2026, co-chaired by Economy Minister Akmal Nasrullah Mohd Nasir, Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar and advisor to the Federation of Malaysian Business Associations Datuk Dr Ameer Ali Mydin.
The statement further noted that the meeting examined issues such as the misuse of immigration passes or visas, the use of proxies, licence leasing, and rent-seeking or Ali Baba practices by foreign nationals —activities that undermine fair competition and the viability of local businesses.
"The meeting agreed on intervention strategies based on compliance, monitoring and empowerment. These include strengthening vendor compliance, data sharing and integrated inter-agency enforcement, risk-based monitoring, and efforts to enhance industry capacity to identify and report non-compliance.
"The Human Resources Ministry, together with relevant government agencies, will detail and coordinate follow-up actions," the statement added.
The meeting also noted Malaysia's improved standing, rising from 23rd place in 2025 to 15th place in the 2026 IMD World Competitiveness Ranking (WCR).
The ranking covers 70 economies and assesses performance based on four key factors: economic performance, government efficiency, business efficiency, and infrastructure.
According to the statement, PEMUDAH will continue to pursue more focused regulatory reforms to enhance government efficiency, improve regulatory quality and facilitate business operations, including through alignment with the Business Ready framework.
“The initiative aligns with the goal of positioning Malaysia among the world’s 12 most competitive economies by 2030.
“PEMUDAH — jointly managed by the Economy Ministry and the Malaysia Productivity Corporation — is committed to implementing regulatory reforms and enhancing the nation’s productivity and competitiveness through practical, high-impact and outcome-oriented solutions,” said the Economy Ministry.
-- BERNAMA